HLS 12RS-94 ORIGINAL Page 1 of 2 CODING: Words in struck through type are deletions from existing law; words underscored are additions. Regular Session, 2012 HOUSE BILL NO. 458 BY REPRESENTATIVE ABRAMSON MINERALS: Provides for notice of breach of a mineral lease AN ACT1 To amend and reenact R.S. 31:136, relative to mineral leases; to provide relative to the2 required notice of breach; and to provide for related matters.3 Be it enacted by the Legislature of Louisiana:4 Section 1. R.S. 31:136 is hereby amended and reenacted to read as follows: 5 ยง136. Written notice; requirement and effect on claims for damages or dissolution6 of lease7 If a mineral lessor seeks relief from his lessee arising from drainage of the8 property leased or from any other claim that the lessee has failed to develop and9 operate develop, operate, or restore the property leased as a prudent operator, he10 must shall give his lessee written notice of the asserted breach to perform and allow11 a reasonable time for performance by the lessee as a prerequisite to a judicial12 demand for damages or dissolution of the lease. If a lessee is found to have had13 actual or constructive knowledge of drainage and is held responsible for consequent14 damages, the damages may be computed from the time a reasonably prudent operator15 would have protected the leased premises from drainage. In other cases where notice16 is required by this Article, damages may be computed only from the time the written17 notice was received by the lessee.18 HLS 12RS-94 ORIGINAL HB NO. 458 Page 2 of 2 CODING: Words in struck through type are deletions from existing law; words underscored are additions. DIGEST The digest printed below was prepared by House Legislative Services. It constitutes no part of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)] Abramson HB No. 458 Abstract: Provides that if a mineral lessee has failed to develop, operate, or restore the property leased as a prudent administrator, the lessor shall give the lessee written notice of the asserted breach. Present law provides that if a mineral lessor seeks relief from his lessee arising from drainage of the property leased or from any other claim that the lessee has failed to develop and operate the property leased as a prudent operator, he must give his lessee written notice of the asserted breach to perform and allow a reasonable time for performance by the lessee as a prerequisite to a judicial demand for damages or dissolution of the lease. Proposed law provides that if the lessee has failed to develop, operate, or restore the property leased, the lessor shall give the lessee written notice of the asserted breach. (Amends R.S. 31:136)